The Jet Airways ownership case encapsulates a lengthy and complex battle involving stakeholders, creditors, and regulatory authorities that has spanned over five years since the airline’s downfall in 2019. Once India’s premier private airline, Jet Airways faced financial turbulence that eventually grounded its fleet and triggered an ownership tussle that has continued to make headlines.
Background: Financial Decline and Insolvency
Jet Airways, founded in 1993, rose to prominence as a full-service airline in India. However, from 2018 onwards, it struggled due to increased competition, high operational costs, and debt. In April 2019, the airline suspended operations, unable to sustain mounting financial losses. Its primary lender, the State Bank of India (SBI), referred the case to the National Company Law Tribunal (NCLT) in June 2019, marking the beginning of insolvency proceedings.
Ownership Bidding and Stakeholders
The insolvency process attracted several bidders, but delays, financial restructuring challenges, and disagreements among creditors prolonged the resolution. In 2021, the Kalrock Capital-Murari Lal Jalan consortium emerged as the winning bidder, promising to revive the airline. Despite their acquisition, challenges persisted as the new owners struggled to secure regulatory approvals, address dues to employees and vendors, and finalize financial commitments with creditors.
Court Rulings and Regulatory Hurdles
The NCLT faced multiple legal petitions and disputes among stakeholders, particularly concerning ownership shares, debt repayments, and lease agreements for Jet Airways’ assets. Creditors, employees, and suppliers repeatedly contested the restructuring proposals, leading to a series of court interventions that further delayed the airline’s relaunch. Regulatory requirements from the Directorate General of Civil Aviation (DGCA) also posed challenges to the consortium’s plans to revive operations.
Conclusion
Five years after its collapse, Jet Airways’ future remains uncertain despite ownership transfer to the Kalrock-Jalan consortium. The protracted insolvency proceedings highlight the complexities of debt-laden industries like aviation and underscore the ongoing regulatory and financial hurdles that can impede corporate restructuring in India.